How to Use a Stock Screener: Filters Explained with Example Setups
How to Use a Stock Screener
A screener filters thousands of stocks down to a short list that matches rules you set. Here is what the common filters mean and how to combine them, with three example setups to practice with in any free screener.
Common filters
| Filter | What it measures | Watch out for |
|---|---|---|
| Market cap | Share price × shares outstanding (company size) | Small caps can move much more and trade thinly |
| P/E ratio | Price ÷ earnings per share | Negative or one-off earnings make P/E misleading |
| Dividend yield | Annual dividend ÷ price | A very high yield often follows a falling price |
| Average volume | Shares traded per day | Low volume can mean wide bid-ask spreads |
| Price | Share price | A low price doesn't make a stock cheap |
| Sector | Industry group | Filtering one sector concentrates risk |
| Optionable | Has listed options | Needed if you plan to practice covered calls |
Example setups to practice with
| Example | Filters |
|---|---|
| Large, liquid companies | Market cap over $10B, average volume over 1M shares, optionable |
| Dividend payers to research | Dividend yield 2%–5%, payout ratio under 70%, market cap over $2B |
| Covered call practice list | Optionable, price $20–$100, average volume over 2M shares |
A simple workflow
- Start broad, then add one filter at a time and watch the count drop.
- Save the filter set so you can rerun it later.
- Treat the result as a research list. Read each company's filings before doing anything with it.
- Most brokers and finance sites have a free screener with these filters.